ABOUT TO FILE IN A DAY OR SO

[ficorenavator]

I am about to file bk in about a day or so because I cannot seem to pay down the balances on none of my cc's accept for one which is BOA and I'm on a special payment program with them. Here is a snapshot of debt

BOA CC- 370.00(Closed)

Capital One-470.90

Aspire Visa- 1073.22(Closed)

Orchard Bank- 292.69

Personal loan- 1090.91(Wages being Garnished/330.00 per pay period)

Personal Loan- 965.00

Check Advances- 344.00

Personal Loan- 180.00

Old Cable Bill(Turned over to CA)-375.00

Check Advance(Turned over to CA)-475.00

Student Loans- 25000.00-30000.00(120+ days late)

My thing is I pay my CC's on time but it's only the minimum most of the time and when I do pay a huge chunk of one of the cards something always comes up or the annual fee kicks in and I'm back square one.  I've only been late on my CC's maybe a total of 4 times(Capital one, Aspire Visa, Orchard Bank).  On the Personal loans and Check Advances I just couldn't keep up with payments and it started stressing me out.  My wife just started back working parttime but, she can't contribute as much to the household because she is paying her Bankruptcy as well.  I've been handling all of the finances for almost two years now and its worn me down.  I make okay money but I cannot save anything due to all the uneccessary expenses and regualar household bills.  So, I said I might as well start over fresh and file.  By the way my fico scores are in the low 400's!!!  What to do?

[ficorenavator]

One more thing:

Car Loan- Owe about 17,500(behind on it as well)Interest rate huge(Drive Financial)

[ficorenavator]

Anybody?

[krielly]

I guess I'm not really clear on what your specific question is?? Maybe if you ask more specifically what it is you are looking for, some of us could offer suggestions... You just say "what to do?"

Thanks

K

[ficorenavator]

I'm just wondering if i should include my open credit lines which are the Capital One and Orchard Bank?  Also, should I include the BOA(I only owe about 370.00) on it.  I've been paying this down on a special payment program.  Will I lose my credit history if I include these accounts?  How long will it take me too recover and start over fresh?

[krielly]

You must include ALL creditors in your BK.  Sorry

Yes, it will take a while to recover.  But in reality, it's a small price to pay for a fresh start.

[ficorenavator]

One more thing, my scores are in the low 400s. Will filing have an even more negative effect or positive?  I know what is killing my score it's my utilizations and previous derrogatory payment history.  Nothing is consistent, I pay on time for a while but, something always comes up and I fall back behind seriously on student loans and then there is a domino effect.  I do have some items due to fall off this year(2 collections and I think some lates as well). 

[krielly]

Nothing personal, but your scores can't really get too much lower from the sounds of things. Sorry

It's entirely possible that your scores could actually improve when you file. The reason for that being, once your accounts report correctly, they should all show a "0" balance. Because utilization is such a high percentage of your score, it more than likely will have a positive impact. I would guess at the very least, it's not going to worsen your score.

I strongly suggest you set up 2 or 3 free consults with BK attorneys in your area. Find one you can be very comfortable with. Good luck, and let us know how you make out.

[ficorenavator]

Thank you and I appreciate your honesty.  I think it will be better for me to file and start over fresh.  I have an appointment today!!!

[krielly]

No problem.

I think the acceptance that its time to file is the hardest part. Facing the music, if you know what I mean.

We weren't able to do a Chapter 7, and had to go with a 5 year Chapter 13 plan. I remember feeling absolutely sick to my stomach about it initially. Not anymore. What's done is done, I can't go back, I can only go forward. I think that if I can learn a valuable lesson in the process and am taking the bull by the horns, I'm much better off for it in the end.

Hang in there!!!!!